DCU has banner month, but questions remain

This column has been corrected to reflect the correct attendance figures for the DCU Center in March 2014.

There has been some good news coming out of the DCU Center recently, highlighted by the 10-year, $4.8 million extension of the naming rights with Marlboro-based Digital Federal Credit Union. As part of the deal, the credit union could make incentive bonus payments of up to $1.75 million over the 10-year agreement, based on attendance numbers.

March was a banner month at the DCU, its second-best revenue month ever. Its top revenue month ever is still last October, which was the first month the DCU Center opened after a summer of renovations. Two October concerts each, by Phish and Pearl Jam, were sellouts.

What drives revenue at the DCU? Concerts are the big sellers. But the bread and butter of the venue are the conferences and expos and home shows, which individually are not as impressive on revenue but bring in the dollars and attendance on sheer number of events.

Of 57 events held at the DCU Center in March, there were only four concerts: two shows of the Cirque du Soleil/Michael Jackson (isn't he dead?) World Tour, and concerts by Demi Lovato and Imagine Dragons.

The arena hosted six Worcester Sharks games, and two NCAA Men's Ice Hockey games. Every other event was held in the convention center.

All of the concert events exceeded their budgeted revenues, and the NCAA event was the biggest one-day revenue event. Combined, the 57 events boosted March's total event income to $862,736, which was more than $147,000 over its budget. Even the Worcester Sharks, whose overall attendance was down for the year, performed better than expected attendance-wise in March.

The DCU Center had 91,576 people attend events in March, well above the 83,890 they expected. Its net operating income for the month was $298,269 — $54,000 over budget.

DCU Center General Manager Sandra Dunn explained to the Civic Center Commission last week that part of the reason March's numbers looked so good was because several events scheduled for February — the Cirque/Michael Jackson event most prominent among them — were instead held in March.

"March is typically a banner month for both buildings," she said.

Thanks to the strong March, the DCU Center looks likely to make its budget for the year. According to its financial statement presented to the Civic Center Commission last week, through March 31, the center has earned $3.9 million, but was budgeted to earn just over $4.1 million, which is about four percent off the pace.

One final loose end from the $23 million renovation is the fate of the retail restaurant space — a small, 1,200-square-foot space at Foster and Commercial streets in the southwest corner of the building. That restaurant space was actually built out onto the sidewalk.

The idea was find a restaurant willing to renovate the space for its own purposes, and then lease the space from the DCU Center.

Ms. Dunn told the commission last week that there has not been any interest from anyone to renovate and operate the restaurant.

So, armed with $650,000 from the city's capital budget, the DCU Center will renovate the space into a restaurant, and then staff it with its own employees.

The restaurant will be a coffee and sandwich shop that might have locally sourced food and healthy menu alternatives, Ms. Dunn told me. The venue will operate independent of the DCU Center during the day, open to the public with access from the street. It can also operate as a pre- and post-event function space to host group and corporate functions. At night, it will serve as a concession for arena events, she said.

One of the looming questions for the DCU Center is the future of the Worcester Sharks. The 30 AHL games held at the center this past season came in way under what was expected for both attendance and revenue. There were additional costs for the treatment of the ice and to cover the ice for scheduled concert events.

The Sharks have signed a contract to be at the DCU Center for the 2014-15 season. But attendance this season was off 300 people per game compared to last season, and there is talk that the parent team, the San Jose Sharks, will look to move their top minor league affiliate to a western U.S. minor league division closer to California. The Sharks have until August of this year to inform the DCU Center if they intend to renew for the 2015-16 season.

"They're not sharing anything with us," Ms. Dunn told the commission this week. "It's all speculation at this point."